Merkelism in Europe has failed

Press release by Sahra Wagenknecht, published on 1 November 2011

"The results of the EU summit have become obsolete after less than one week. When it comes to failure this German government really is in the lead. These negative achievements endanger the euro and democracy", comments Sahra Wagenknecht the euro crisis that is becoming ever more dramatic. The spokesperson on economic issues of the LEFT parliamentary group in the Bundestag continues:

"The German chancellor finds herself unprotected amidst a barrage coming from the financial markets. The interest rates for Italian debt obligations has risen to new records only yesterday. The European Central Bank has cut back on its activities, and the levered euro rescue package is not ready for operation. It is not sure if Merkel and Sarkozy will succeed in squeezing more money out of the heads of governments for their EFSF gambling hall at the upcoming G 20 meeting this week. The voluntary debt cut which banks were begged into accepting in the case of Greece hangs in the balance after the Greek referendum has been announced.

A constructive and successful crisis solution can now only be brought about on the basis of the proposals of the LEFT. The public finances must immediately be liberated from the dependence on the financial markets. In order to do so the states must be able to borrow money with favorable interest rates from the ECB via a public bank without being forced into austerity programs. Public debt must drastically be reduced to a viable level by means of a debt cut as well as a EU-wide capital levy for millionaires. The banking sector must be re-organized on a cooperative and public basis and must be strictly regulated."